Propane Shortage: Does the present predict the future?

Although we are told the fracked gas from Pennsylvania filling the Constitution Pipeline, if built, will be sent to domestic markets to the benefit of domestic customers, it seems that world market pricing will have much more to do with the destination of the gas than words on paper in an application sent to FERC.

Posted
on February 3, 2014 by Rachel Goff

So, the other day I was wondering why some portions of this country were dealing with shortages of propane and the accompanying price spikes. Since information is readily available via the internet, I searched on” propane shortage” to check out the situation. The article I read cited two main reasons for the current shortage: first, a lot of propane was used last fall to help dry a bumper crop of corn, and secondly, more propane was exported out of the United States than usually occurs because market pricing made it more profitable to export than to retain the propane for domestic use. Drying corn grown in this country? Corn is used in a wide variety of foods for people plus animal feeds and to make ethanol, thus this part of the explanation seemed very reasonable to me. Exporting domestic supplies of propane, thereby creating semi-localized shortages and huge price increases for people who need this fuel to heat their homes during this very challenging winter? Troubling, to say the least. What does this have to do with Constitution Pipeline? Although we are told the fracked gas from Pennsylvania filling the Constitution Pipeline, if built, will be sent to domestic markets to the benefit of domestic customers, it seems that world market pricing will have much more to do with the destination of the gas than words on paper in an application sent to FERC. What do you think?

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Williams and Cabot, are proposing to build the Constitution pipeline through our lawns, fields, forests, wetlands and streams. People from along the proposed route – all 120 miles from Pennsylvania to Schoharie County – have formed a coalition to try to stop them. We invite you to join us